Car loan: when to pay it off

decap00 · #1 (**permalink**) 05-09-2010, 08:20 PM

I was wondering if it would be better(cheaper) to pay extra payments each month or to save up and pay it off all at once, either way ill end up paying it off in about the next 7 months. Currently the interest rate is just over 9% with around 10k left on the loan.

Thanks for any suggestions =)

BAEVentures · #2 (**permalink**) 05-10-2010, 01:26 PM

Pay as you have the money available. Making a lump sum payment is easier, but interest will accrue on the principal balance daily/monthly. Paying the extra principal when you have the cash available should save you a few more dollars in interest.

BAEVentures

sussanesylvia · #3 (**permalink**) 05-24-2010, 07:19 AM

I agree with the above post. It would be better to pay as much as you can every month so that you can save some part of the interest that you are paying on car loans.

sussanesylvia · #4 (**permalink**) 06-04-2010, 04:56 AM

You can contact some car loan professionals who will provide you with whatever information you require.

rockstar1 · #5 (**permalink**) 06-19-2010, 01:45 PM

in 7 monhts

WR78 · #6 (**permalink**) 06-29-2010, 05:22 PM

Alternatively, you could refinance your car loan to a lower APR and keep paying it off, but saving money on the payments. This may help raise your credit score. I went from over a 7% on my loan to a 3.9% when I did my refi using MoneyAisle.

Eric80 · #7 (**permalink**) 06-30-2010, 07:16 AM

in my opinion if you pay extra each month the payments should be a bit lower due to the interest.
but only do it if you can afford it each month, its pointless to financially struggle each month just to go from paying off your car to accumulate debt

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